As companies continue to strive to improve their compliance processes in the digital era, RegTech Analyst has announced the sixth annual RegTech100.
The 2023 list compiles the world’s most pioneering businesses in the regulatory technology market that are helping financial institutions deal with the most pressing compliance and risk management challenges.
The pandemic sparked a RegTech boom, with the rise of hybrid work and an increased usage of digital channels. The sector
As the world moves on from the pandemic, the sector has continued to remain strong. Research from ResearchAndMarkets claims that the market will grow by a compound annual growth rate of 19.8% by 2027.
With such a competitive market, this year’s process to select the most 100 innovative solutions included the widest and most diverse companies to-date.
A panel of analysts and industry experts reviewed a longlist of nearly 1,300 businesses, which was produced by RegTech Analyst. They sought to highlight the solutions every leader in financial services need to know about in 2023.
RegTech Analyst director of research Mariyan Dimitrov said, “With the rapid changes in regulatory frameworks, working habits and customer expectations, compliance and regulatory technology continue to be a growing area of investment for financial institutions as they streamline their operations.
“The RegTech100 list helps senior executives get a better ROI on that spending by highlighting the leading companies in areas such as onboarding, risk management, fraud prevention and information security.”
Many of the companies featured in the new RegTech100 list have recently hit the headlines.
One of these is ION, which provides mission-critical trading and workflow automation software, high-value analytics and insights, and strategic consulting to financial institutions, central banks, governments, and corporations.
The company recently extended its cleared derivatives product suite. Its XTP solution offers a full front-to-back product suite that leverages connected data to provide real-time insights into net positions, margins, risk, analytics, commissions and more. This solution now includes JANUS risk management and Clarus CHARM analytics solutions.
Another RegTech100 company to hit headlines was 6clicks. The company offers an AI-powered GRC solution which helps businesses and advisors automate risk and compliance programs in hours. In September, the company raised $10m in a funding round led by Centerstone Capital.
CUBE, a global industry leading RegTech company providing Automated Regulatory Intelligence, also completed a funding round this year. In October, the company secured strategic funding from growth investment firm Bregal Milestone. This represented the first institutional capital investment raised by CUBE.
ID-Pal is another RegTech100 company to have recently secured funding. The identity verification solution enables organisations to verify identities and addresses in real-time. It raised €7m in its Series A, which was backed by Inspire Investments and Act Venture Capital. The company has had a busy year. It also entered the UK market and teamed up with Lerex Technology.
There was also acquisition activity undertaken by RegTech100 companies. In May, MyComplianceOffice acquired Schwab Compliance Technologies to support its expansion effort within the RegTech space. MyComplianceOffice is a compliance management platform that tackles challenges for financial firms, all in one place with one login.
Similarly, a number of the RegTech100 companies have been forming partnerships. Know Your Customer recently teamed up with Hawk AI. They are combining Know Your Customer’s digital onboarding and business KYC solutions with Hawk AI’s transaction monitoring capabilities to help customers harmonise their AML programs. Know Your Customer provides a modular compliance solution to help teams build the perfect KYC and KYB process for their business. Other developments from the RegTech include a partnership with Lambert Smith Hampton and expansion across the US.
IMTF has also been busy making deals. The company develops fraud-, compliance- and regulatory technology solutions to combat financial crime. It recently partnered with Parashift, a provider of advanced machine learning-based document classification and data extraction software, to accelerate document processes with AI. The company has also acquired the compliance business of intelligence software company FICO. Gion-Andri Büsser, the CEO of IMTF recently spoke to FinTech Global about why financial institutions must improve the second layer of their compliance ecosystem.
Another RegTech100 company in the news was Red Oak Compliance. It boasts the advertising compliance review software of choice in the financial services industry. Earlier in the year, the company revealed how it has helped an unnamed client reduce the potential for human error in processes.
Kharon, a research and data analytics company that provides comprehensive and actionable intelligence on sanctions, forced labour, and other financial crimes, joined the Temenos Exchange earlier in the year.
Other companies in the RegTech100 list are: ACTICO, intelligent automation and digital decisioning software provider; AML Partners, a no-code platform for GRC, KYC/AML, and Case Management; Arctic Intelligence, which offers financial crime risk and compliance gap assessment software; Armadillo, which uses RPA to deliver information on 500 million companies and five billion individuals; Content Software, a provider of RegTech solutions for investment research; Decision Focus, which offers a cloud-based no-code platform for GRC functions; Elliptic, a blockchain analytics and cryptoasset risk management company; Fingerprint, which enables compliant communications supervision for regulated firms; and Fintellix, a data management platform and regulatory technology solutions developer.
Other notable companies in the list are KYC Hub, which automates anti-money laundering compliance and customer due diligence; Merkle Science, a predictive risk and intelligence platform for crypto companies and FIs; OMNIA, which helps firms which interact with crypto, protect users and prevent unwanted transactions; Quantifying Nature, a climate and biodiversity financial analytics platform; S&P Global Market Intelligence Cappitech, a regulatory reporting, best execution analysis and business intelligence solutions provider; Vneuron, a provider of compliance solutions for financial institutions and FinTech companies; and Worksmart, which offers RegTech solutions covering Training & Competence (TC) and accountability regimes.
A full list of the RegTech100 and detailed information about each company is available to download for free at www.RegTech100.com.
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